$42 Million USDT Freeze Sparks Lawsuit Against Tether

Tether has been sued by two Thai businessmen over a $42.4 million freeze of USDT tokens. Nutthawat Rukthammachalern and Natthawat Kasamvilas claim that Tether blacklisted their wallets on October 30, 2025, nearly four months before a seizure warrant existed.

The two men purchased the tokens secondhand and never opened a Tether account or accepted its terms of service. An informal request from an HSI agent was made to Tether, but no legal basis for the freeze was provided, according to the complaint filed in the Southern District of New York.

Tether has been collecting interest on the frozen tokens while holding them, which amounts to roughly $130 billion in Treasury securities through Cantor Fitzgerald. The plaintiffs are seeking relief including restored transferability, a ban on any burn, disgorgement of that yield, and punitive damages.